Concerns about robo-advice are lapsing amongst financial advisers, but financial service providers should not entirely dismiss the risks posed by robo.
Whilst the willingness of customers to invest through robo-advisers is currently outweighed by a preference for human interaction during the digital advice process, the projected growth rate of fourth industrial revolution technology is cause for vigilance.
A number of macro factors, such as the inter-generational wealth transfer to a generation more actively engaged with automation, and the extensive evolution of technological capability, risks reducing human input in advice in as little as a decade. Financial services firms should be prepared for distinctive changes in the everyday life when these technologies are operating at their peak.
Feature first seen in Professional Adviser on 07/08/2018
